I adopt the general rule that if you are recharging the cost of the postage to your customer at cost i.e. you are not making a profit from the postage, then VAT does not need to be added to this amount.
Thought this was interesting - I have a VAT invoice here issued by Tesco for the sale of stamps to my client, clearly showing them as standard rated and the VAT amount - now, knowing that stamps are exempt should I claim the VAT as I have a valid VAT invoice??
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Jenny
Responses are my opinion based on the information provided. All information should be thoroughly checked before being relied on.
Good question BudgetB; you're within your rights to as it is a valid VAT receipt but due to the amount, I probably wouldn't. I would, however, inform the store that their system needs looking at. In May this year, I processed fuel receipts for a client and the petrol station was still charging at 17.5%. What would you do here? I've even had a burger king receipts showing the same.
I don't fancy helping Tesco out with their accounting really - I am strongly anti-Tesco!!
I like that your clients are including their Burger King receipts as business lunches haha! I guess where the petrol station is concerned you can only claim the VAT that's been charged - although if it was an independent then I probably would approach them, explain where they were going wrong and try and get the business!
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Jenny
Responses are my opinion based on the information provided. All information should be thoroughly checked before being relied on.
